Regulator, Go Slow on Reining in High-Speed Trading

There has been much discussion lately about the risks associated with high-speed algorithmic trading and the need for aggressive regulation. But has the need for regulation passed? Markets are often self-correcting, and there is some evidence to indicate this is occurring.

Wherever there are profits to be made, there is incentive for additional competitors to enter the market. And traders using complex mathematical programs to automatically execute buy and sell orders entered the market in droves once the technology was...